As the international market continues to expand, reliable freight forwarders have become more important than ever before to ensure goods are able to be organised, shipped, and delivered on time across borders.
Essentially, freight forwarding companies are responsible for the organisation of international freight and ensuring that goods move from one part of the world to the other without issue or delay. This includes factors such as customs and quarantine clearance of cargo/goods, streamlining/assuring a competitive price and shipping time is maintained, as well as being the liaison to the various institutions that are involved with border control and processing.
As BCR is one of the longest-running and trusted freight forwarding companies in the country – we’ve been asked a lot of questions about our services and the industry we occupy. We’ve been providing comprehensive logistical solutions for 130 years and in that time, we’ve amassed a reputation for being an indispensable freight forwarder for our clients.
This blog piece will be answering a few common questions we’ve received over the years as the premier freight forwarders of Australia.
Want to learn about how we became one of the leading freight forwarding companies in the country?
- What Is An Incoterm?
An incoterm is a shortened version of “International Commercial Terms” and is a universal referencing system that cuts down on the confusing elements that sometimes pop up between a buyer and seller. It’s a necessary practice in freight forwarding companies and it allows us to communicate succinctly across borders.
Some of the more common ones you’ll find are:
CIF – Cost, Insurance, and Freight
This incoterm references an expense that is paid by the seller of a good(s) that covers the insurance and costs associated with a buyer’s purchase whilst in transit.
DDU – Delivery Duty Unpaid
This indicates that the seller is responsible for ensuring that purchased goods arrive safely, however it also means that the buyer is then responsible for import taxes and duties.
DDP – Delivery Duty Paid
Indicates that it is the responsibility of the seller to cover all relevant import clearances, taxes, and duties of the goods.
EXW – Exworks
This indicates that a seller will make a product or good available at a contractually designated location wherein the buyer must cover the transportation costs
FOB – Free on Board
This is an indication of whether the buyer or the seller is liable for any damage or loss incurred to the goods in transit.
- What Documents Will I Need For The Process?
This is not as simple as it appears as there are many factors to consider that can impact the necessary documents. It’s important to remember that each country will have its own documentation requirements, so the factor of origin/destination of cargo will play a vital role. Some fundamentals are some forms of documentation that outline the value of the goods, this is usually in the form of a commercial invoice.
Other documentation could be passports, import customs declarations, certificates of origin, packing declarations etc.
- Can I Complete The Process Without A Freight Forwarder?
While it is very possible to complete the tasks of a freight forwarder on your own – the number of necessary tasks, skillsets, and time can add up. Tasks such as liaising with various entities across multiple locations, preparing all documentation ready for each shipment, while also troubleshooting any problems that manifest throughout – there can be no room for error.
The true utility of freight forwarding companies resides in the fact that they take a majority of the administrative burden from the shipping and transportation process, allowing business owners to focus on more important tasks for their bottom line.
- Do Free Trade Agreements Impact Costs?
Free Trade Agreements are special relationships between countries that allow goods to be sold or traded without as many cumbersome charges and fees associated. Enticing trade between nations has a strengthening impact for all involved and naturally, this means that the costs of shipping to Australia from FTA countries have benefits for the overall cost of transport and importation.
- Why Should I Choose BCR?
So, why should you choose BCR as your freight forwarder? Simply put, we have the results and experience necessary to give our clients peace of mind. We’ve been working in the industry for over 100 years and have cultivated working relationships and partnerships with logistics players around the globe.
When it comes to freight forwarding companies, BCR is the first and only choice.